0148 GMT - Malaysia is likely to remain a key data-center hub despite reports of Chinese companies using local facilities to train AI models in order to dodge U.S. chip curbs, says MIDF Research analyst Royce Tan Seng Hoo in a note. While awaiting official clarification, he believes older Nvidia chips were used, possibly to accelerate work ahead of the now-rescinded U.S. AI diffusion framework. The withdrawal of the Biden-era rule curbing the export of sophisticated AI chips is positive for the data-center value chain, he adds. Tan notes no signs of project delays, and contractors are still actively bidding for new data-center construction. MIDF maintains a positive rating on Malaysia's construction and utilities sectors, and expects continued momentum in data-center investments and related infrastructure. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
June 18, 2025 21:48 ET (01:48 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.